Dive Brief:
- Mars plans to invest an estimated $1.4 billion into its U.S. manufacturing and operations footprint in 2027, the most the Cheez-It and Snickers maker said it has invested in a single year.
- The Virginia-based company said the investments “serve as an accelerator for Mars growing portfolio of snacking brands” that will allow it to scale products and boost innovation. The money will also enable it to modernize existing facilities, improve its supply chain and improve its geographical reach.
- Mars has been expanding its portfolio beyond its core of candy and gum. Most recently, Mars dolled out $36 billion to buy Kellanova, creating a snacking giant with a portfolio including M&Ms, Extra gum, Pringles and Pop-Tarts.
Dive Insight:
Despite inflationary headwinds, food and beverage companies are still investing in U.S. production particularly for trendy segments like high-protein or other ingredients. Many companies have also opted to invest in modernizing existing facilities to create new efficiencies or replace production at other plants.
Food and beverage renovation and equipment upgrade planned projects rose 27.6% in September from the previous month, according to Industrial SalesLeads. Mars has already spent millions in 2026 to expanding production, including $60 million for its fruit-based treats brand Trü Frü and $49 million on a wet pet food facility in Ohio.
Claus Aagaard, Mars’ CFO, said 94% of the company's products sold in the U.S. are made here. “Our continued investments build for the future – expanding our manufacturing capabilities, accelerating growth across our portfolio and services and ensuring we can meet the evolving needs of consumers for generations to come," he added.
Mars estimated it employs 80,000 people in the U.S. alone. The food maker added that with 15 new facilities added following the Kellanova acquisition, Mars will continue to make strategic manufacturing investments to modernize its U.S. facilities.
Sarah Zimmerman contributed to this story.
